Goldman Sachs' 9 Best Stocks for 2012

If the bank's picks work out, investors could make up to 61% in the next six months.

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Aeroflex Holding ( ARX) gets a $14 price target from Goldman, a 61% premium to its current price.

The company makes sophisticated components used in wireless-communications systems. It's a volatile stock, losing 47% this year and 40% over the past 12 months.

But Goldman analysts say part of its potential is as a takeover target. "We maintain our (conviction list-buy) rating as we expect strong growth in 4G wireless to drive results for Aeroflex's test division and make the company an even more attractive (merger and acquisitions) target."

The analysts add that "management noted that several companies are considering Aeroflex as an merger and acquisitions candidate, and we expect interest to increase next year."

Apple ( AAPL), one of the most widely held stocks in the world and maker of the iPad and iPhone, gets a $520 price target from Goldman's analysts, which means a 38% appreciation potential. Despite this stock's great run, up an average of 43% per year over the past 10 years, Goldman analysts still see great value.

The firm's analysts write in a recent research note that "we still expect the company to deliver solid December-quarter results, boosted by iPhone sales momentum."

They say the company had "a tough miss" in its fiscal quarter ending in September, falling short of analysts' estimates "but (we) expect a sharp holiday snapback. "

"Revenues of $28 billion and (earnings) of $7.05 (per share) were below our estimates of $29 billion and $7.30 and consensus of $30 billion and $7.38," said the Goldman research note. "This was an uncommon earnings miss for Apple, which has not missed consensus earnings in years."

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Aeroflex (ARX) surged more than 25% to a one-year high of $10.47 on Tuesday after British aerospace and defense supplier Cobham announced it would purchase the U.S. communications equipment manufacturer for $920 million.

Acquisitive U.K. aerospace company Cobham on Tuesday agreed to buy Plainview, N.Y-based Aeroflex Holding for $1.5 billion in cash and debt to further expand its communications business and offer new markets for the target's products.

Shares of Aeroflex Holding (ARX) are up over 24% in pre-market trade after it was announced that the wireless communications firm entered into a merger agreement with U.K.-listed Cobham in a deal valued at $920 million.